What is NFT? What is it used for? Why do investors need to pay attention?
NFT has gained popularity as a trend in the gaming world. But in fact, we can use NFT in many ways that many people don’t think. Today we will get to know what NFT is and what investors should know about NFT.
What is a Non-Fungible Token (NFT)?
NFT Market place is a Non-Fungible Token is a token that adopts Blockchain technology, enabling ownership of an asset, with each token being different. It’s no different from collectibles or valuables. Each piece will have its characteristics, for example, a car that each vehicle will be different from if a friend borrows our vehicle to drive. Friends will have to bring back our old car.
By its function, we can remove the unique assets that we have that can be issued as a digital token, for example, assuming we have a self-made painting with a value of 1 million dollars? We are in India. And people who want to buy are in Italy trading, financial transactions, and transportation. It will be complex and expensive. But if we take that image and turn it into a digital NFT token, we can find buyers from anywhere by doing all digital transactions, and buyers will be able to get ownership of that artwork quickly.
What are the characteristics of NFT?
Most NFTs are built on Ethereum using the ERC-721 and ERC-1155 standards. Token assets may already be unique assets such as card games, art, collectibles, or even artist reputation, which is the wonder of digital assets because the asset model can be very diverse. The Coin telegraph website explained the difference between each NFT coin, which has three differences:
- Unique – The internal structure of a token is unique.
- Rare – the rarity of the tokens. There may be a limit on the number of tokens.
- Indivisible – Cannot be traded into smaller units. Must be able to sell only in full, i.e., cannot buy only 50% of the value.
What is a Fungible Token?
A Fungible Token is a token that is not unique and can be replaced, For example, let’s say a friend borrows sugar at home. Like this, friends can bring back any bag of sugar. Since each bag is the same, or if a friend borrows 1 BTC of our bitcoins, they will return any bitcoins. It doesn’t have to be the same as the Non-Fungible Token or NFT.
What are the benefits of NFT?
The Bollywood NFT is beneficial to both the buyer and the portfolio seller. Because in addition to making the trading of collectibles, art, or other rare items. Happening in the digital world easily, it is also a new investment option where you can trade tokens for profit to increase their value and, more importantly. If looking at the cost of security and storage, then holding digital assets can also lower the cost of holding for investors/collectors until it may change the industry of investors and collectors completely. We are mentioning some of the well known bollywood NFT which are Rohit Sharma, Manish Malhotra, Kamal Hassan.
NFT usage example
NFT has gained quite a lot of attention in the gaming industry because it has already started. Until proven to be exciting and helpful today, we will look at an example of NFT usage.
NFT increases the value of art
If years ago someone said you could sell your art digitally. We are probably thinking of painting for sale on the Internet. Where can you save the picture and send it to your friends to see? Who can even pass on the actual art? But I can’t imagine doing this, in addition to the money paid to buy the work. How will that work increase in value? But in today’s digital world, Digital art trading is possible. Ready to create added value, not different from general art trading using NFT? Let’s try to guess. What is the price?
Please give more hints that this cute sister image is a game on the Ethereum blockchain called Crypto Kitties. You can collect cards and breed cats, and each cat has different unique characteristics. And the person who owns it can also show ownership.
In short, someone bought this cat card with NFT at 600 ETH, or at the time it was worth around $390,000, and in addition to trading on the website, other markets support it, such as OpenSea, allowing investors to sell the cat for a profit. It’s another investment opportunity.
NFT in gaming
Another example that emerges is Sorare, a soccer card game that combines the real world with the virtual world. League football has already joined the project, such as Serie A and the Bundesliga, among others based on the rarity of the cards, e.g. 1 black card, 10 blue cards, and 100 red cards, all NFT trading takes place.
Non-Fungible Token or NFT allows us to use Blockchain more than ever. Making collectibles, art, or can trade other valuable assets more efficiently at a lower cost. It also increases the value of assets until there is an opportunity to invest for investors. After this, we may see more applications of NFT in various fields in the future. Let’s follow together with the highlighted link. If interested in getting into the digital asset industry, come and try to invest with a service provider officially licensed by the SEC like our recommended site for free and without fees.